THE OBAMACARE SURPRISE: A NATIONAL EXCHANGE — States were supposed to be the copilots of Obamacare, running exchanges locally and taking ownership of their version of the health law. But as Republicans resisted and Democrats flubbed attempts to build their own exchanges, a powerful, larger-than-expected HealthCare.gov has emerged — and it’s not the temporary, short-term option Obamacare supporters once envisioned. The Pro story: http://politico.pro/1rnGeP0

Story Continued Below

--OREGON PREPARING TO SUE ORACLE FOR EXCHANGE FLOP — Oregon Gov. John Kitzhaber has asked his state’s attorney general to sue Oracle, the contractor behind his state’s failed Obamacare exchange. Pro’s Jennifer Haberkorn reports: “We will hold Oracle accountable for resources spent that did not produce a result,” Kitzhaber, a Democrat running for re-election this fall, told state lawmakers during a legislative briefing. The California-based Oracle Corp. provided “a technology that did not in fact work,” Kitzhaber said. Oregon spiked its exchange and agreed to join HealthCare.gov last month. The suit would be the first against an exchange over a failed ACA exchange. http://politico.pro/1rmeURp

OHIO OBAMACARE RATES LEAD TO SPIN WAR — State insurance commissioner Mary Taylor, who’s also the second in command to Republican Gov. John Kasich, immediately panned new health insurance rates filed to appear on the state’s exchange as unacceptably high. The rates, 13 percent higher for individuals and 11 percent higher for small businesses, were caused by “continued and unnecessary headwinds out of Washington,” Taylor said in a statement. But she also noted that 16 plans are offering coverage on the exchange in 2015 — four more than a year earlier. In addition, although average individual monthly rates are up to about $374 from $332 last year, the lowest available — $316 — is 5 percent lower than last year’s lowest. And none of that factors in tax credits. The Ohio statement: http://1.usa.gov/TYeRfW

Good morning and welcome to Friday PULSE, the TGIF-unless-there’s-a-late-afternoon-news-dump edition.

“Can you help me occupy my PULSE?”

POLL: PARTISANSHIP COLORS PERCEPTION OF OBAMACARE IMPACT — Partisanship has seeped into the perception of Obamacare’s actual impact, a new Kaiser Family Foundation tracking poll shows. Democrats are five times likelier than Republicans to say they’ve been helped by the health law, and Republicans are nearly five times as likely to say they’ve been hurt. Although majorities in each party say they haven’t been affected at all, the split shows how deeply entrenched the politics of health care have become. Similarly, more Democrats say they know someone covered because of the law, and more Republicans say they know someone who lost coverage. About half of registered voters say they’re tired of hearing Obamacare discussed on the campaign trail and that the health law is one of many factors they’ll use when they vote in five months.

--Obamacare itself is still mired in unpopularity. Forty-four percent of respondents said they feel unfavorably toward the law while 38 percent reported a favorable feeling about it. A Gallup poll released Thursday also showed the Americans’ attitudes have changed only marginally since March, with 43 percent approving of the law and 51 percent disapproving. The story: http://politico.pro/1lWLSzp; The poll: http://bit.ly/1pCfkhT

MURTHY: OUT OF THE LINE OF FIRE – Dr. Vivek Murthy, the White House pick for surgeon general who is opposed by the National Rifle Association, joked with the Harvard Medical School class yesterday that he appreciated their warm welcome after the controversy on Capitol Hill. “Thank you for not protesting my speech,” he said in his commencement address, referring to other controversial commencement speakers this spring. “Frankly I would have come anyway … It’s nice to be out of the line of fire for a change,” he said with a smirk. He briefly mentioned that the surgeon general post is not without controversy-- and praised one of his predecessors who faced political backlash. C. Everett Koop, he said, "spoke the truth about HIV prevention despite fierce political opposition" and "believed that science and public health should not be compromised by politics."

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WHITE HOUSE HIGHLIGHTS YOUTH CONCUSSIONS — President Barack Obama drew attention to rising concerns over youth concussions and their potential long-term impacts, a growing issue as the toll of head injuries becomes increasingly evident. The Associated Press reports: “Obama, an avid sports fan and father of two daughters involved in athletics, highlighted millions of dollars in pledges and other support from the National Football League, the National Institutes of Health and others to conduct research that could begin to provide answers and improve safety … ‘We have to change a culture that says, “suck it up,”’ he said.” http://politico.pro/1oOpw7b

SOME FAITH LEADERS SEE MEDICAID EXPANSION AS MORAL DECISION — Faith leaders supportive of Obamacare’s Medicaid expansion described a moral imperative Thursday for resisting governors and state Legislatures to change course. Pro’s Natalie Villacorta reports: “The faith leaders participating in the teleconference expressed frustration over lawmakers’ intransigence and said it’s time for them to act. The group wants the issue to play a role in this fall’s midterm elections, suggesting that some incumbents may need to change their position to get reelected.” http://politico.pro/1hhH101

OBAMACARE AND DISCRIMINATION — Two groups have filed suit with DOJ’s Office for Civil Rights against four Florida insurers over claims that the companies are breaching Obamacare’s anti-discrimination requirements. The companies — CoventryOne, Cigna, Humana and Preferred Medical — have structured their prescription drug policies to discourage people with HIV/AIDS from enrolling, according to the National Health Law Program and The AIDS Institute. “The ACA provides robust consumer protections, including putting an end to discriminatory practices by health insurers,” said Wayne Turner, NHeLP staff attorney. “But these insurance plans are running afoul of that by placing all HIV/AIDS medications in the highest tiers with exorbitant co-insurance and co-pays, and instituting other barriers to obtaining commonly prescribed HIV/AIDS medications.” The complaint: http://bit.ly/1ivzmpy

CONSUMER GROUP WANTS ACA RATES RELEASED — Consumers Union is calling out the HHS for sitting on health insurance rates proposed for 2015 by insurers without making them public. The consumer advocacy group is pushing for Secretary Kathleen Sebelius to release all available rates before they’re finalized and it’s too late to put pressure on insurers to bring them down. A sample letter that the group posted on its site calls on Sebelius to release rates before she leaves office, expected next month when her would-be successor, Sylvia Mathews Burwell, is hoping to be confirmed. The petition: http://bit.ly/1k8u3Rc

LUNG CANCER SCREENINGS IN MEDICARE — A bipartisan group of senators wants Medicare to cover a new form of lung cancer screening they say helps catch the disease way ahead of other diagnostic tools. In a letter to CMS chief Marilyn Tavenner, the 44 senators — led by Dianne Feinstein (D-Calif.) and Johnny Isakson (R-Ga.) said the scans were widely available to the privately insured but not to Medicare recipients. “The United States Preventive Services Task Force has already evaluated low-dose CT scans for high-risk patients and provides a positive recommendation for this screening tool,” they wrote. “This means that patients with private insurance are gaining access but Medicare beneficiaries are still waiting.” The letter: http://1.usa.gov/1oyDSLe

CONGRESS HEARS FROM ADVOCATES FOR MENTALLY ILL – Advocates for the seriously mentally ill shared their stories and thoughts with members of Congress yesterday at a briefing convened by Rep. Tim Murphy. Murphy, who’s been pushing hard for his mental health bill which especially seeks to address the needs of those with severe conditions like bipolar disorder and schizophrenia, said the recent shootings at Isla Vista, California and Fort Hood especially highlight the need for these folks to receive the right kind of treatment.

--Edward Kelley, whose son has schizophrenia, urged lawmakers to acknowledge that some people are so seriously ill they’re unable to voluntarily seek treatment. Opposing involuntary treatment puts other people at risk, he said.

--D.J. Jaffe, executive director of Mental Illness Policy Organization, chided Democrats for focusing too much on helping people with milder conditions like depression and ignoring those with more serious needs. “For too long we Democrats have failed to recognize important truths — like, there’s a small group of the seriously mentally ill who do become violent,” he said. “We have to move from a system that requires tragedy to one that prevents it.” ICYMI, our recent Pro story on the subject: http://politico.pro/1lRxKu4

PULSE LYRICS

Monday: PULSE holiday

Tuesday: Audioslave, “I am the Highway”

Wednesday: The Offspring, “Meaning of Life”

Thursday: Beastie Boys, “Super Disco Breakin’”

Friday: Black Sabbath, “Paranoid”

WHAT WE’RE READING, by David Pittman

A New York Times editorial criticizes the Obama administration’s plan to expand care to veterans outside the Department of Veterans Affairs network. http://nyti.ms/SWGFAB

A separate story in the Times highlights the VA’s physician shortage and work to fill 400 vacancies of primary care doctors. http://nyti.ms/1nIWFS6

Republicans are hitting Georgia’s Democrat running for governor for wanting to expand Medicaid in the state where most people want it, Huffington Post reports. http://huff.to/1kPH8yF

The California Senate passed a bill that would add warning labels to sugary drinks, Reuters reports. It still needs to pass the House. http://reut.rs/1nziuG3

The number of measles cases has reached a 20-year high in the U.S. as the Washington Post reports. http://wapo.st/1mwDrfA

SEE IT FIRST: THE FRIDAY COVER — The highly anticipated weekly reveal from POLITICO Magazine. Drive the conversation every Friday morning by seeing it first. Sign up here: http://politi.co/1h7CIyG.

Only Pros know news first on — ONC and CMS MEANINGFUL USE, INOPERABILITY, TELEMEDICINE and MORE. POLITICO Pro eHealth launches Tuesday, June 3 covering all of these topics and more. Plus, Pros get exclusive access to instant intelligence, smart analysis, customized content and Pro-only events. For more info, contact us today at HC.Info@politicopro.com.

** A message from UnitedHealthcare: When it comes to health care, you have questions, concerns and doubts. We believe you deserve thoughtful answers and simpler, more responsive health care. That's where UnitedHealthcare comes in. We see information and data from across the health care system and we are using those numbers to innovate programs and tools. Innovations that work for you. That's HEALTH IN NUMBERS. www.uhc.com **

** A message from PhRMA: Diabetes is a complex disease affecting more than 30 million Americans – with one-in-ten living in DC, Maryland and Virginia having the disease. Thanks to advances in diabetes care, patients around the country are living longer, healthier lives. Take five-year-old Rhys for example [link to his I’m Not Average profile]. He was diagnosed with type 1 diabetes at 15-months-old, but today, he is a thriving young boy. This is due in large part to new and innovative medicines developed by researchers and scientists at America’s biopharmaceutical companies. Learn more about the medicines in development for diabetes here. **

Authors:

About The Author

Kyle Cheney is a reporter for POLITICO’s Campaign Pro.

Cheney came to POLITICO in June 2012 to cover health care and spent two years covering the implementation of the Affordable Care Act and its political implications – from the Supreme Court decision upholding the law to the rollout of HealthCare.gov and the coverage gains that ensued. He came to POLITICO after five years reporting on Massachusetts government and politics for the State House News Service, an independent wire service. Coverage, which appeared daily in The Boston Globe, Boston Herald and others, included the implementation of a near-universal health care law; the indictment, trial and conviction of the state’s third felonious House speaker in a row; the rise and reelection of Gov. Deval Patrick; and all matters of public policy.

Cheney, a New York native and unabashed Yankees fan, graduated from Boston University in 2007 with a journalism degree after a semester as editor of BU’s student paper, The Daily Free Press.